MARVIN MANDEL, Governor                                     1665

REVISOR'S NOTE: This section is new language
derived from Art. 48, §10 of the Code. The
present reference to the surety bond issued
in accordance with the provisions of Art.
78A, §§46 - 50 is omitted and a reference to
the committee established by these sections
is substituted.

SEC. 7-306. FUND.

ANY MONEY RECEIVED BY THE WAREHOUSE CONSTITUTES A
FUND TO HELP DEFRAY PARTIALLY THE EXPENSES INCURRED IN

ADMINISTERING THIS SUBTITLE. ANY UNEXPENDED FUNDS

SHALL REVERT TO THE GENERAL FUNDS OF THE STATE AT THE

END OF THE FISCAL YEAR.

REVISOR'S NOTE: This section is new language
modeled after an analogous provision in
§7—205. It is made applicable to the
Warehouse because the funds collected by the
Warehouse are used to defray the expense of
administering this subtitle. The second
sentence of this section is added by
amendment to indicate explicitly that any
funds of the Warehouse unexpended at the end
of the fiscal year shall revert to the
general funds of the State.

SEC. 7-307. INSURANCE COVERAGE FOR THE WAREHOUSE.

(A)   SECRETARY SHALL OBTAIN COVERAGE.

IN ORDER TO COVER LOSSES SUSTAINED BY ANY PERSON
STORING LEAF TOBACCO IN THE WAREHOUSE, THE SECRETARY
SHALL ARRANGE FOR APPROPRIATE INSURANCE COVERING ANY
LOSS BY FIRE, AND PROVIDING FOR EXTENDED COVERAGE, AND
COVERAGE FOR LOSS BY WATER IF IT IS OBTAINABLE AT
REASONABLE COST. COVERAGE SHALL BE AVAILABLE BY
PROPER ENDORSEMENT FOR THE BENEFIT OF ANY PERSON
STORING LEAF TOBACCO AS HIS INTERESTS MAY APPEAR.

(B)   OWNER SHALL PAY CHARGE.

THE OWNER OF THE TOBACCO SHALL PAY THE CHARGE FOR
HIS INSURANCE COVERAGE UPON REMOVAL OF THE TOBACCO
FROM THE WAREHOUSE.

(C)   EXCEPTION.

NO INSURANCE MAY BE PROVIDED AND NO CHARGE MADE
WHERE THE OWNER MAKES A WRITTEN WAIVER OF INSURANCE